The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 26.5 per cent following the conclusion of its 305th meeting in Abuja.
CBN Governor, Olayemi Cardoso, announced the decision on Tuesday, during a press conference, after the two-day meeting attended by all 11 MPC members.
The committee also retained all other key monetary policy parameters, underscoring its cautious stance as it continues to assess inflationary trends and broader macroeconomic developments.
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Under the decision, the Cash Reserve Ratio (CRR) remains at 45 per cent for deposit money banks and 16 per cent for merchant banks, while the Standing Facilities Corridor was retained at +500/-100 basis points around the MPR. The CRR on non-TSA public sector deposits was also maintained at 75 per cent.
According to the MPC, the decision to hold rates steady was driven by persistent inflationary pressures and the need to sustain macroeconomic stability.
The committee noted that inflation has recorded consecutive increases in recent months, with Nigeria’s headline inflation rate rising to 15.69 per cent in April 2026 from 15.38 per cent in March.
The latest decision follows the MPC’s 304th meeting in February 2026, when it reduced the benchmark interest rate by 50 basis points from 27 per cent to 26.5 per cent, marking the first rate cut after a prolonged cycle of monetary tightening. At that meeting, the Liquidity Ratio was retained at 30 per cent, while the Standing Facilities Corridor remained unchanged.
Analysts had largely anticipated a hold decision ahead of the meeting, citing persistent inflationary pressures, exchange-rate concerns, and heightened global uncertainties.
Market observers also pointed to rising crude oil prices and renewed geopolitical tensions in the Middle East as factors capable of increasing imported inflation risks and complicating the inflation outlook.
The CBN has continued to balance its inflation-fighting mandate with efforts to support exchange-rate stability and foster economic recovery. Financial market participants expect the apex bank to maintain a cautious approach while evaluating the impact of previous monetary tightening measures on inflation, liquidity, and economic activity.
By keeping rates unchanged, the MPC signalled its commitment to containing inflation while closely monitoring the effects of elevated borrowing costs on businesses, investment, and economic growth.
The Monetary Policy Rate serves as the benchmark interest rate used by the CBN to influence lending rates, liquidity conditions, inflation, and overall macroeconomic stability. While higher interest rates can help curb inflationary pressures, they also tend to raise borrowing costs for businesses and consumers.
Nigeria’s private sector has repeatedly expressed concerns over the impact of high interest rates on investment and expansion, even as inflation remains one of the central challenges confronting monetary policymakers.
